Getting your pricing right can be the difference between success and failure in business. It’s a British cultural tic that we feel uncomfortable talking about how much things cost. Here, Dental Business Coach, Ashley Latter, suggests ways to overcome our discomfort and make sure we charge appropriately for treatments and services.
As Stephen Kinnock, Minister at the Department for Health and Social Care pointed out at the recent Select Committee hearing, the vast majority of dentists in the UK are self- employed. Which means even though many dentists enter the profession to be able to carry out dental treatments, they also need to accept that they are also running a business.
One of the keys to running a successful business is to ensure you have the correct pricing structure in place. This is something I have seen a number of dentists struggle with. They become so wrapped up in their dentistry, that they don’t pay enough attention to making sure they are charging properly for their services.
I have even come across dentists who undercharge for certain treatments simply because they enjoy doing them! If it’s a procedure they enjoy then it’s also likely they are highly skilled at it and have a good reputation for that treatment, and yet they almost deliberately undercharge because they get pleasure from delivering that particular treatment! That seems like strange logic to me! If a dentist has a particular speciality, then they should at least charge the going rate. Indeed, they could even charge a premium.
Many dentists fear that they’ll lose patients if they increase their charges. However, dentistry is a personal service in which trust plays a big part. Building rapport and trust can take time. In the same way people used to have a ‘family doctor’, patients like to stick with a dentist they know and trust and value the relationship they have with their usual dentist.
As a dentist, your role is two-fold: to deliver high-quality care to your patients while ensuring the sustainability of your business. To ensure the longevity of your business it’s crucial to set the correct fees for your services. It’s also important to avoid the temptation to discount fees in the hope of increasing treatment plan uptake.
Undercharging or offering a discount for dental services not only affects your practice’s turnover but can also affect your patients’ perception of the quality of your care. ‘If it’s this cheap, is it any good?’
Confidence is key when it comes to pricing and fee increases. Patients live in the real world and will be aware that costs have been increasing for everyone. If you have good relationships with your patients, they are unlikely to resist an increase in fees as long as they are in line with those they’re seeing elsewhere.
Here are five reasons that set out the benefits of setting appropriate fees for both the practice and your patients.
They reflect the true value of your services
When setting your fees they should reflect the skills, time, and resources needed for each treatment. By undercharging you devalue the work you and your team perform daily. Patients are more likely to associate higher fees with higher quality care, so setting your fees appropriately helps communicate the value of your services.
Enhances patient perception
Patients often associate the cost of something with its quality. If there is a significant difference in your fees from those of other practices in the area, potential patients might question whether the quality of your care is up to par. Making sure your fees genuinely reflect the value and quality of the services you offer, you position your practice as a credible and professional choice for dental care. This will help attract more patients who respect your skills and expertise.
More opportunities to invest in the practice
Charging the correct fees gives you scope to invest in your practice. That could involve sprucing up the décor of your practice, purchasing new equipment and technology or funding courses for yourself that will enhance your skills and widen your opportunities.
You can make sure your team is paid fairly
Delivering good service and a great patient experience takes a whole team. Whether that’s your front of house staff, nurses, associates or hygienists, they all play a part in your patients’ journey. Setting your fees properly allows you to make sure all your team members are remunerated fairly for the part they play. The boost to team morale this can offer is also likely to help you retain staff saving you the hassle and costs associated with recruiting new team members.
Attracts the sort of patients you really want
This flows from the points above. By setting your fees appropriately, it allows you to provide your patients with a first-class patient experience. This should encourage them to value their oral health and invest in maintaining and improving it.
Also, if they’re getting a great experience when they come to the practice, not only are they more likely to attend regularly but they will also talk to their friends, family and colleagues about how good your practice is. This will help attract more of the type of patient to your door that you want.
Make sure your fees reflect the true value over your treatments and have the confidence to believe in them.
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